Bankruptcy isn’t the only debt solution for individuals and entities in Goshen, New York. There are several paths to good financial health, and a good bankruptcy attorney will help you explore all options before recommending a specific strategy or process. At Simon Haysom, our goal is to help you build a successful future that is not only debt free but thriving. In some instances, bankruptcy is the best option to reach this goal, but not always.

At Simon Haysom, we’ve successfully helped individuals and entities plan and implement a financial alternative to bankruptcy. Throughout this process, we offer legal counsel and recommend the involvement of financial advisors to provide the full scope of a debt solution.

We advise clients to proceed carefully and cautiously through debt settlements and negotiations with a debt relief company, but ultimately have seen many clients realize financial independence and a debt-free life because of these alternatives to bankruptcy.

What Are Alternatives to Bankruptcy?

If you are in financial distress, there are generally three alternatives to bankruptcy.

The first option is to create a new budget and approach to paying your bills. This might mean finding a new source of income solely dedicated to debt repayment or cutting other costs to repay secured debt. There are several paths to financial health, if a client is able to put hands on some non-essential assets or cash.

The second option is debt settlement. This involves paying a substantial portion of your debt in a single, lump sum in exchange for forgiveness of the remaining debt. Frequently there are two problems with this approach – it can be difficult for a debtor to obtain a substantial amount of free funds or the creditor won’t accept a lump sum. It’s a careful balancing act trying to determine creditors that can be repaid through this means without triggering a bankruptcy situation and more problems.

The third option is debt negotiation. Over the years, Goshen bankruptcy attorneys have become unwilling to recommend this solution to most clients. The hesitancy is based on the reputation of debt relief companies that handle the process.

Should I Seek an Alternative to Bankruptcy?

For most people and companies in Goshen, the solution to a difficult financial situation could take many forms. In some instances, the right path is built on necessity, such as filing Chapter 7 bankruptcy because the amount of debt far outweighs your income and assets. For other debtors, the correct path to financial freedom is decided by willpower and savvy decision-making, such as committing to an alternative to bankruptcy.

Whereas Chapter 7, Chapter 11, or Chapter 13 bankruptcies are handled through specific court procedures and requirements, alternatives to bankruptcy are handled outside the confines of a set legal structure. This increases the risk to an individual or business. Fair dealing and honesty are expected, but not always assured.

The risks are particularly high in debt negotiation. Debt relief companies are interested, first and foremost, in making a profit. In the worst instances, these companies don’t offer a legitimate service, but are simply shell companies serving up a scam. In the best of cases, a debt relief company’s interests are far from aligned with the debtor. Any red flags should be discussed with a Goshen bankruptcy law firm before you sign a contract or pay fees.

Why Hire a Local Lawyer?

As a Goshen bankruptcy attorney, partner Simon Haysom will do more than simply recommend a solution, then walk away. Instead, he makes a commitment to provide legal counsel through the entirety of a financial solution. Through regular face-to-face meetings, Simon Haysom builds trust and gains a better understanding of each client – the essential ingredients to a strong attorney-client relationship and the building blocks for your ideal financial solution.

Remember, bankruptcy could be in your best interest. At Simon Haysom, our bankruptcy attorneys have seen many clients try to avoid bankruptcy by all means possible, only to find themselves in steeper debt. Through our careful approach to financial situations, we can advise clients on some of the benefits of bankruptcy and their best choice of alternatives.